At the time of dissolution, after recording all entries relating to the realisation of assets and the settlement or transfer of liabilities, what does a credit balance in the Realisation Account indicate?

Correct answer: वास्तविकरण लाभ, जिसे साझेदारों के पूंजी खातों में लाभ-विभाजन अनुपात में स्थानांतरित किया जाएगा

A credit balance in the Realisation Account arises when the realisation proceeds and credits relating to liabilities exceed the amounts debited to the account. It represents a realisation profit, which is transferred to the partners’ Capital Accounts in their profit-sharing ratio. Merely having cash receipts greater than cash payments does not by itself establish a profit; the book value of assets and the treatment of liabilities must also be considered. Exam tip: a credit balance means realisation profit, while a debit balance means realisation loss.